What will $75 Oil mean to us?
I was asked today to comment for a national publication on the statement by T. Boone Pickens: “In an interview with FOX Business Network at ACG InterGrowth, T. Boone Pickens predicted oil will hit $75/barrel by the end of the year. How is your firm playing the energy sector, how does the current economy factor into your strategy and will it take “pain at the pump” to strengthen the push toward alternative energy sources?”
My Comments:
My firm RDSeismic LLC provides Seismic Imaging Equipment for Oil and Gas exploration world wide. With oil selling for less then the replacement value (cost of exploration and development of fields) our customer business in the US is down over 50% this year. Clearly this is not a good thing for our economy long term. I was perviously CEO of the largest US Wind-Power company so I know a little about alternative energy. Wind Energy and other renewables are great, however they will never replace our dependancy on Oil and Gas. $75/ Barrel oil is a good thing for the US and the world, without a higher price soon the US energy business will be decimated. What we could really use is some support from Washington for a bold Nuclear Power initiative (much like China and France are doing).
